Italian banks have experienced a decade of difficulties due to:
- Low interest rates and profitability
- Bad loans which were disposed of through write-downs and sales
- Increasingly stringent restrictions on capital requirements, eroded in the meantime by losses
However, 2021 and the next few years can represent a turning point, for at least 5 reasons. Find out more in our latest blog.
Entrusting Mario Draghi, former governor of the European Central Bank, to form an institutional Government had the immediate and visible effect of pushing the 10 Years BTP/German Bunds spread below 100 bps, the lowest level since 2015 and revamped investors’ interest in Italian banks. Investors believe that Mario Draghi has the experience, the credibility and authority to lead the country, which will benefit Italian banks.
ITALY - On Friday 12th, February, Mario Draghi accepted the mandate to become Prime Minister and announced his Government Team, based on 23 Ministers. 8 of them are high-profile technicians and professional experts.